Michael Hutchence's daughter Tiger Lily reportedly living in a 'squat' as she waits for inheritance

The director behind the new Michael Hutchence documentary has claimed that the late rock star's only child is living in a "squat".

Australian filmmaker Richard Lowenstein told the Herald Sun that he made the shock discovery when he visited Tiger Lily Hutchence Geldof's London flat last October to get her approval on his new documentary Mystify, which premieres on July 4.

Tiger Lily was only 16 months old when her dad died in 1997. (AAP)

"I met up with Tiger for dinner in London and everything she did and said reminded me of Michael," said Lowenstein, who befriended Hutchence after he directed INXS' 'Burn For You' video in 1984. "We went to her flat to watch the documentary and it was like a little squat.

"I said, 'Where's the money from your dad's estate?' and she said, 'I've never received anything from anyone. I had a meeting once with an accountant that was so bad I didn't want to do it again,'" he recalled.

Hutchence and Paula Yates began dating in 1994 and Tiger Lily was born two years later. (Getty)

Tiger Lily, 22, was due to inherit a share of the INXS frontman's fortune when she turned 21. A 2017 article published by The Sun reported that she would receive "millions" from a trust fund her dad had set up, but one year on from her 21st birthday and still no developments.

"I think if Michael had been alive he would have been in absolute horror, and every friend of his I've spoken to agrees, if he'd seen the situation his daughter is in [financially] and seeing what's happened to his estate he would be in abject horror," said Lowenstein. "She is his legal heir. We've had lawyers look at it, I'm sure the money will be sorted out."

Tiger Lily attends an event in London with friend Bunny Kinney in 2017. (Getty)